A lesser ratio ordinarily signals stronger fiscal health, larger financial flexibility, and reduced dependence on federal allocations.
Top 10 states together with the lowest Debt-to-IGR ratio in 2025
10. Jigawa – 2.40%
Jigawa emerged as the situation alongside the lowest Debt-to-IGR ratio in Nigeria in 2025. FCT – 53.00%
The FCT generated N356.34 billion in IGR whilst maintaining debt of N188.86 billion, producing a Debt-to-IGR ratio of 53.00%, meaning its debt stock was equivalent to roughly N53 for every N100 of IGR.
7. Ondo – 13.95%
Ondo recorded an annual IGR of N60.32 billion against a debt stock of N8.42 billion, translating to a Debt-to-IGR ratio of 13.95%. Its relatively sizeable earnings base consequently significantly changes the category in the middle of its debt stock and sales.
4.Katsina – 21.95%
Katsina ranked fourth, using a debt-to-IGR ratio of 21.95%. One of the most practical indicators of fiscal sustainability is the Debt-to-Internally Generated Sales (IGR) ratio, which compares a declare’s debt stock together with the proceeds it generates internally.
The debt-to-IGR ratio compares a condition’s outstanding debt stock together with the salary it generates internally. That means Yobe’s debt stock was equivalent to additional than five times its annual internally generated turnover.
- Benue: 362.68% (IGR: N29.57 billion, Debt stock: N107.23 billion)
- Taraba: 303.65% (IGR: N28.16 billion, Debt stock: N85.51 billion)
- Bauchi: 295.61% (IGR: N52.79 billion, Debt stock: N156.05 billion).
- Cross River: 234.24% (IGR: N58.64 billion, Debt stock: N137.36 billion)
- Sokoto: 231.45% (IGR: N20.48 billion, Debt stock: N47.39 billion)
- Niger: 214.96% (IGR: N66.37 billion, Debt stock: N142.67 billion).
What you should recognize
The 2025 rankings underscore significant differences in fiscal sustainability across Nigeria’s states. On the other hand, assorted states persist to carry debt loads that significantly exceed their annual internally generated revenues.
A condition’s debt profile is numerous times viewed by route of the lens of how much it owes, but a greater key gauge is how easily that debt can be serviced. Kano – 52.57%
Kano generated N102.26 billion internally against a debt stock of N53.75 billion, leaving the declare alongside a Debt-to-IGR ratio of 52.57%.
As Nigeria’s largest commercial hub in the North, having one of the larger IGR figures in the crew, Kano furthermore carried a sizeable debt stock, and its earnings base continues to endorse manageable debt levels.
6.Kebbi – 47.11%
Kebbi recorded an annual IGR of N31.23 billion and debt stock of N14.71 billion; thereby reporting a Debt-to-IGR ratio of 47.11%. The situation generated N1.769 trillion in annual IGR, compared together with a debt stock of N1.219 trillion.
- This means Lagos’ debt stock was equivalent to approximately N68.93 for every N100 of IGR.
- Lagos had the largest debt stock amid the states, at further than N1.2 trillion, but it additionally had by far the largest IGR, at N1.77 trillion. This means its debt stock was equivalent to additional or lower N13.95 for every N100 generated internally
The declare’s resilient proceeds execution relative to its debt burden suggests a healthy balance sheet and sturdy debt-servicing capacity.
1. Its relatively modest debt stock helped offset its lesser turnover base
The status continues to value from a powerful commercial ecosystem and one of the country’s most vibrant SME sectors, helping to sustain sales generation.
2. The numbers mean that for every N100 Jigawa generated internally in 2025, its debt stock was equivalent to merely regarding N2.40.
Jigawa’s opinion is chiefly so remarkable owing to the reality that its IGR was not the highest in the midst of the states listed. The declare generated solely N16.01 billion in annual IGR, against a debt stock of N81.00 billion. This means the situation’s debt stock was equivalent to approximately N47 for every N100 annual IGR.
5.Enugu – 38.74%
Enugu ranked fifth in the table including a debt-to-IGR ratio of 38.74% recorded one of the strongest sales performances between the top-ranked states, generating N406.77 billion in IGR whereas carrying debt of N157.60 billion.
Its Debt-to-IGR ratio of 38.74% places it firmly amid Nigeria’s fiscally adaptable states.
Enugu’s case is notably intriguing owing to the point that its IGR is substantially elevated than that of the other states in the low-ratio collection.
The condition’s N406.77 billion IGR was too in the midst of the highest recorded nationally in 2025, based on the IGR information provided. Rather, the low ratio was driven mainly by the combination of a moderate IGR base and an exceptionally low debt stock.
Where Lagos stands
Lagos, despite having the largest IGR in the 2025 dataset, recorded a debt-to-IGR ratio of 68.93%. States such as Jigawa, Ondo, Anambra, Katsina, and Enugu stand out for maintaining low debt burdens relative to their internally generated turnover, demonstrating stronger debt-servicing capacity and larger fiscal flexibility.
At the other complete of the spectrum, states using Debt-to-IGR ratios exceeding 200% address a heavier debt burden relative to their sales base, highlighting the summon for to lengthen internally generated earnings and strengthen fiscal oversight.
The figures too reveal why debt sustainability cannot be assessed by debt size alone. The situation generated N66.73 billion in IGR during the time that maintaining a debt stock of just N1.6 billion, resulting in a Debt-to-IGR ratio of 2.40%.
This produced a gap of additional than N65 billion in the midst of its annual IGR and reported debt stock. The situation generated N64.29 billion in IGR compared to debt obligations of N14.11 billion. Kogi – 63.62%
Kogi recorded N43.94 billion in annual IGR and debt stock of N27.95 billion, resulting in a Debt-to-IGR ratio of 63.62%.
8. Even although Lagos carries one of the largest debt stocks in the country, its 68.93% Debt-to-IGR ratio reflects the strength of its sales-generating capacity, making its debt profile considerably additional sustainable than those of several decreased-turnover states. As a finding, its debt-to-IGR ratio remained below 100%.
This illustrates why the ratio is helpful alongside absolute debt figures: a situation using a big economy and resilient internally generated earnings can carry a larger nominal debt stock whilst recording a reduced debt-to-salary ratio than a situation using much reduced debt but an even reduced turnover base.
Additional Insight
At the other terminate of the spectrum are states whose debt stocks significantly outweigh their internally generated revenues, highlighting latent fiscal vulnerabilities.
Yobe recorded the highest debt-to-IGR ratio at 506.02%. So, its outstanding debt was equivalent to on N21.95 for every N100 of internally generated sales.
The relatively low ratio underscores the status’s capacity to oversee debt minus significant strain on internally generated resources.
3.Anambra – 20.25%
Anambra ranked third alongside a debt-to-IGR ratio of 20.25%.
The condition posted N57.03 billion in internally generated turnover and a debt stock of N11.55 billion, translating to N20.25 in debt stock for every N100 of internally generated salary.
Anambra’s outlook is noteworthy given that its IGR was lesser than that of multiple states additional down the list, including Kano, FCT and Kwara. Kwara – 66.06%
Kwara had the highest ratio amid the initial 10 states listed, at 66.06%.
The declare generated N95.36 billion in IGR and debt stock of N62.99 billion in 2025, translating to a Debt-to-IGR ratio of 66.06%.
Consequently, its debt stock was equivalent to around N66.06 for every N100 of internally generated sales.
9.
States together with relatively solid internally generated turnover (IGR) and modest debt stocks recorded the lowest debt-to-IGR ratios in 2025, including Jigawa, Ondo and Anambra occupying the top three positions.
Investigation of the 2025 Debt-to-IGR information by Nairametrics Inquiry shows that a handful of states have built huge turnover-generating capacity during the time that maintaining relatively low debt burdens.
Source: Jigawa, Ondo, Anambra record lowest debt-to-IGR ratios in 2025
